- The US dollar has gone back and forth during the course of the early hours on Thursday, but I think at this point in time, it looks like the ¥152 level continues to be a major issue as far as buyers are concerned.
- This is an area that we are trying to get above, and it is probably only a matter of time at this point.
I think given enough time, we will probably see the market break above there and continue to go higher to reach towards the ¥155 level. Short term pullbacks continue to attract a lot of attention from what I can see, and with that being the case, I think you have to look at this as a market that you are just going to simply hold on to in order to get paid.
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Volatility on Friday
Yes, there will be a lot of volatility, and of course there will be a lot of noise on Friday due to the nonfarm payroll announcement. But at the end of the day, this is still a very positive market, and I don't think that will change anytime soon. A significant pullback to the ¥150 level is possible, but that would only invite more buying pressure as ¥150 is not only a large round number and a number that's been supported previously, but it's also where the 50 day EMA currently is raising toward.
If we do break above the ¥152 level, then ¥155 will be targeted and I believe it will be in relatively short order. The Bank of Japan recently raised interest rates to essentially zero, but the interest rate differential is still far too strong for this pair to break down any time soon, at least not without some type of massive fundamental shift. I continue to buy dips, looking for bits and pieces of value.
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